By Vineet Kumar 
Axis AMC Launches Momentum Fund NFO: Open from November 22 to December 6
Axis Mutual Fund has introduced its latest offering, the Axis Momentum Fund, through a new fund offer (NFO) that will remain open for subscription from November 22 to December 6, 2024.
Momentum investing, a strategy gaining traction globally and in India, forms the core of this fund. Unlike traditional investment approaches that focus on fundamentals like earnings or return on equity (ROE), this strategy zeroes in on stock price trends. In simple terms, it rides the wave of winning stocks, aiming to profit from their upward momentum while they’re still hot.
What Sets Axis Momentum Fund Apart?
Speaking at the launch, Ashish Gupta, CIO of Axis Mutual Fund, explained, “Momentum funds provide a dynamic way to navigate market trends. Our active momentum fund doesn’t rely on static rebalancing like passive indices. Instead, it allows us to adapt quickly to changing conditions and avoid illiquid stocks.”
Here’s how this approach works: Imagine a rally in technology stocks. A momentum fund would pick up on this trend, allocating more weight to outperforming tech stocks. On the flip side, if the market shifts to a defensive stance favoring sectors like FMCG or pharma, the fund would pivot accordingly.
Key Features of the Axis Momentum Fund:
Benchmark: The fund is benchmarked against the Nifty 500 index.
Investment Range: It will allocate 80-100% of its portfolio to equities and equity-related instruments based on the momentum theme.
Stock Selection: Stocks will be filtered based on returns and liquidity.
Historical Performance: Data from Axis AMC reveals that momentum as a strategy has outperformed the Nifty 500 in 83% of the last 18 calendar years.
Why Choose an Active Momentum Fund?
The active approach provides agility. Unlike passive momentum indices, which are rebalanced only semi-annually, Axis Momentum Fund’s active management ensures quicker responses to market shifts. For instance, if a stock shows strong momentum early in the year but fizzles out by mid-year, the active strategy can exit it before the next index rebalance, potentially protecting returns.
The Axis Momentum Fund is designed for investors seeking to capture market trends without being bogged down by traditional metrics. With its ability to pivot across market environments, it offers a versatile option for those looking to stay ahead of the curve.
The NFO closes on December 6, 2024—don’t miss the chance to ride the momentum wave!
